The kids are alright: Why the recession isn’t putting off graduate entrepreneurs

A DECADE ago most university graduates could be divided into three categories.
Those who had studied vocational degrees and were off to pursue their chosen careers, those who were attracted to a life in accounting or law despite initial degree choices, and those who simply wanted to get any old job to pay off their debts or travel the world until they “found themselves”.

Few would have thought about setting up their own business after leaving university – even fewer while they were still studying.

But much has changed. Today’s universities and higher education colleges now actively encourage business start-ups and entrepreneurialism through courses, classes and mentor support.

This, and the Government’s move to encourage entrepreneurialism in schools, has created a generation of “everything’s possible” business leaders.

Even the economic downturn isn’t turning off would-be entrepreneurs off from starting their own enterprise. In fact, numbers are growing as Kairen Skelley, business development manager at Leeds University explains.

“A lot of students are looking at starting their own business as a career,” she says.

“They’ve taken a look at the graduate job market and decided they would rather work for themselves. Many of them have parents or family members who are self-employed so they think nothing of it.”

The university does much to support students looking to start-up their own companies including offering business planning advice, mentoring, as well as developing skills in enterprise.

A mixture of competitions with cash prizes and grant funding are also offered by the university in a bid to help ventures get off the starting block.
Skelley say that although many student entrepreneurs lack business skills, their enthusiasm, passions and wealth of ideas is always impressive.

“Putting them through a rigorous business planning process helps them understand whether their good idea is actually a viable business,” she adds.

“For example, they have to do market research before they can start-up, who they are going to market to and who are their customers.

“We then help them to understand the importance of cash flow, forecasting and budgeting and legal issues. They need to know how much cash they’ll need for the business, not just for materials and so on but other overheads such as taxes. We need them to understand that without cash there is no business.”

Courses offered by the university also help students identify whether running a business is really for them.

With not even a full year of trading under its belt, graduate business Think Pacific typifies the level of confidence and maturity graduate businesses now have.

The web-based business – www.thinkpacific.com – co-ordinates five weeks or three momth volunteering holidays in Fiji and is one of many young ethically minded businesses being set up in the growing venture travel sector.

Its founders Harry Hunter and Simon Darker had both spent time volunteering on the Polynesian island and shared a mutual respect for its communities. But it was when the two met in 2005 that the concept of organising volunteering holidays, initially Darker’s, was made into reality.

“It’s taken us two and a half years to organise, but that’s because so much ground work has been done,” explains Hunter.

“The gap year market is one of the fastest growing markets and our market research showed that 57% of young people had Fiji at the top of their list.

“Knowing our idea would work, we then set about developing our own volunteering programmes with the island’s council. This means the communities have a say in what would benefit them.”

Even though the business is only seven months young, it is already ahead of projections. Not even the recession is dampening the pair’s ambitions.

“We’re really positive. Enquiries are increasing including from professionals, many of whom are on voluntary sabbaticals or career breaks,” Hunter adds.

The young entrepreneur also has glowing praise for the help given by Leeds University not least the £1,000 cash prize won in one of its business competitions.

“They helped us focus more and taught us the importance of cash flow and the importance of revisiting your business plan as things progress,” he says.

“The experience of setting the business up has been excellent. I would encourage anyone to go for it.”